The URL can be used to link to this page

Home My WebLink About1992 08-20 CCM Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL WORK SESSION REGARDING THE 1993 PRELIMINARY PROPOSED BUDGET AUGUST 20, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met for a work session and was called to order by Mayor Paulson at 7:14 p.m. ROLL CALL Mayor Paulson, Councilmembers Dave Rosene, and Phil Cohen. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund and Council Secretary Nancy Berg. The City Manager presented the preliminary proposed budget to the City Council explaining the purpose is to provide the City Council with sufficient information to establish a preliminary 1993 property tax levy and budget total by September 15, 1992.. The Finance Director explained the purpose of the preliminary proposed budget is to set a tax rate which the county can use to notify taxpayers of what their approximate property taxes might be if each taxing jurisdiction adopts its proposed levies. He reminded the Council that the levy may be lowered, but not raised. The Finance Director reviewed for the Council the City Manager's instructions for submitting the departments' budget requests. He informed the Council that the significant problem factors total $952,064, and that amount breaks down as follows: 1. Fund balance transfer not available: $303,725 2. New State sales tax: $100,000 3. Cut -back of borrowing for equipment purchases: $365,000 4. Economic Development Authority first time levy: $183,339 The Finance Director continued to explain there are two significant positive factors: 1. 1980 park bonds paid off. $350,238 (No levy necessary for 1993) 2. Prioritization process: The process assisted departments in preparing their budget requests. The total proposed budget for 1993 is $11,349,767, which is a decrease from 1992 of $47,465, or 0.42 %. The total proposed tax levy for 1993 is $6,636,929, which is an increase over 1992 of $489,700, or 7.97 %. Approximately 3% of the levy increase is due to a first -time levy for the Economic Development Authority. The Finance Director explained there are two accounting changes motivated by the outside auditor's recommendations: 1. Salary & fringe benefits netted against expense rather than shown as revenue. 2. Charge custodial costs to community center to better reflect costs to be recovered. The Finance Director further explained that the proposed budget does not include a separate levy of the Housing & Redevelopment Authority of $145,619. The Finance Director next reviewed the remaining budget calendar. The City Manager informed Council if the 1 percent Liquor Tax is t t3' g e e ce t Food and Li b P q o e P laced on the ballot November 3 staff a will need direction as to what f e o public hearing will be held and the County must be notified prior to September 15, 1992 of the type of hearing and the date. Councilmember Rosene asked questions of staff regarding the revenue as listed on page 1 of the 1993 Proposed Summary Estimated Revenue and Appropriations. �' 1. In regard to the Lodging Sales Tax -- Councilmember Rosene asked staff if the City can expect an increase in 1993 without such events as the Superbowl. The Finance Director answered: yes, the hotels have been going a very good business. 2. Non - Business Licenses and Permits -- Councilmember Rosene asked what these might be. The Finance Director answered such things as residential remodeling permits. 3. Miscellaneous Revenue -- Councilmember Rosene asked why such a large decrease. The Finance Director answered because of the reduction of sales of Certificate of Indebtedness. 4. General Government Service Charges -- Councilmember Rosene asked why the decrease. The Finance Director answered because of the change in accounting procedures. The percentage for engineering projects in past years was shown as revenue not netted against engineering costs. - 7 30'f 92' 2 /�0�9 2— 5. Public Safety Service Charges -- Councilmember Rosene asked what type of services these are. The City Manager explained it could be copies of reports, false burglar alarms (for businesses only), or possibly a chemical spill. The City is authorized to charge for some of the service to clean up a chemical spill. Councilmember Cohen, in regard to Business Licenses & Permits, asked then the City last looked at the liquor licenses and stated the cost of the license should be in relation to the cost of servicing the establishments. The Finance Director answered that it has been five years since the City has looked at the liquor licenses and that staff will be coming back to the Council with a report. Councilmember Rosene asked why the penalties and interest for property taxes had taken such a large jump between 1991 and 1992. The Finance Director explained the City is going to have the auditor look at why we have not been receiving more penalties and interest when the penalties have been rising. Councilmember Rosene asked staff if the Unit Numbers on page 4 of the 1993 Proposed Budget will be broken down further. The City Manager answered that yes, they will be. The City Manager reported that the potential shift in the Health Department from the City to the County will probably be possible. The City Manager asked the Council to wait until the next Council meeting on Monday, August 24, 1992, to review the Capital Improvement Program Status Report. He explained that the report is a preliminary one in that Diane Spector has been "called" for maternity duty 2 weeks early. He stated this item will be on the August 24, 1992, agenda. Councilmember Cohen asked staff what the projected cost -of- living rate is for 1993. The City Manager answered the cost -of- living rate for 1992 is 3 percent, and projected to be between 3 and 3 -1/2 percent in 1993. Councilmember Rosene stated the 1993 Proposed Budget seems to be appropriate. He further stated it is high but not exceedingly so. Councilmember Cohen agreed the 1993 Proposed Budget is appropriate while still maintaining services. He believes the City is on the right track and the Council must set the levy now based on the best possible information staff has provided. Councilmember Rosene stated he is curious about reactions to the 1 percent Food and Liquor Tax. He asked what the restaurant owners had to say. - 73 e/ 92- 3 - i �-- / ;), a /,: n/- - Z - & The City Manager answered the restaurant owners were not thrilled but they understood the necessity for the tax. He explained the tax will really only affect the larger facilities such as Holiday Inn, Days Inn, and Earle Brown Center as they do a large banquet business. Councilmember Cohen asked that the Chamber of Commerce be asked to set their next meeting for late afternoon or evening so the members of the City Council can attend. He asked staff to put together a slide show showing what the Housing and Redevelopment Authority has accomplished to show at the Council meeting on August 24, 1992. The City Manager agreed to contact the Chamber of Commerce to suggest a late afternoon or early evening meeting time for their next meeting. The City Manager also agreed to put the matter on the City Council Agenda for Monday, August 24, 1992. Mayor Paulson asked if the Council will be receiving more information on the reorganization of the EDA. The City Manager explained the Council will be receiving more information and there was limited information in the prioritization process. He further explained the EDA reorganization will be explained in greater detail in the final Budget Proposal. Councilmember Rosene asked the City Manager for a very brief explanation. The City Manager explained the EDA reorganization will eliminate two positions and will merge departments under one department head. ADJOURNMENT There was a motion by Councilmember Cohen, and seconded by Councilmember Rosene to adjourn the work session. The motion passed unanimously. The Brooklyn Center City Council Work Session adjourned at 8:20 p.m. P O Deputy City Clerk U Todd Paulson, Mayor Recorded and transcribed by: Y Nancy Berg Northern Counties Secretarial Services E'IAd le z -- - 7aQO2 -- 4